EIB Provides €175 Million Loan to Northern Fiber Holding Group for Northern Germany Fiber Optic Network Expansion

EIB Provides €175 Million Loan to Northern Fiber Holding Group for Northern Germany Fiber Optic Network Expansion

(IN BRIEF) The European Investment Bank (EIB) has granted a significant €175 million loan to Northern Fiber Holding Group (NFH) to support the expansion of its fiber optic network in northern Germany. This funding, in addition to the €240 million financing round completed in April 2023, marks a milestone as the first structured loan for the rollout of fiber optic networks in Germany. NFH, the digital infrastructure platform of UBS Asset Management in Germany, will also receive financial support from several banks. The total loans amount to €415 million, and they will be used to develop a fiber optic network connecting up to 500,000 households in less densely populated areas, contributing to Germany’s goal of providing gigabit connectivity to all households by 2030 as outlined in the German Digital Strategy and European Digital Compass. This project aims to address Germany’s lag in fiber broadband network deployment compared to other European countries and stimulate the country’s fiber optic market.

(PRESS RELEASE) LUXEMBOURG, 19-Dec-2023 — /EuropaWire/ — The European Investment Bank (EIB) is granting a €175 million loan to Northern Fiber Holding Group (NFH) for the expansion of its fibre optic network in northern Germany. The loan comes in addition to a €240 million financing round that the company closed in April 2023, and is a milestone as it is the first structured loan for the roll-out of fibre optic networks in Germany.

NFH is the digital infrastructure platform of UBS Asset Management in Germany. The EIB loan comes in addition to bank financing provided by Norddeutsche Landesbank (NordLB), Skandinaviska Enskilda Banken (SEB), Kommunalkredit, Raiffeisen-Bank International (RBI), Triodos Bank (Triodos) and the KFW-Bankengruppe.

The loans totalling €415 million will be used to develop a fibre optic network in northern Germany that aims to connect up to 500 000 households in less densely populated regions.

Germany is far behind other European countries in rolling out fibre broadband networks. This project will support the targets of the German Digital Strategy and the European Digital Compass to provide all households with gigabit connectivity by 2030. Some of the project costs are expected to be financed using operational cash flows when the network is in use.

NFH was advised by Macquarie Capital and Hogan Lovell, EIB by Ashurst.

EIB Vice-President Ambroise Fayolle, who oversees financing in Germany, said: “The EIB is proud to support the comprehensive expansion of the much-needed fibre optic network in Germany. Fibre optic networks are the backbone of the digitalisation of the economy, which is the prerequisite of future success in modernising and transforming industry and services in the country.”

NFH CFO Franz von Abendroth added: “We are very proud to have attracted the EIB to finance this project. This underlines the positive development and the solid strategy of the NFH in the German fibre optic market. The previous financiers welcomed the inclusion of the EIB into the consortium to foster the roll-out of the fibre network to all households in the region.”

NFH CEO Richard Krause said: “There is movement in the German fibre optic market: With the new acquisition, we are also creating important cross-regional synergy effects that will sustainably stimulate the German fibre optic market and from which our customers will benefit.”

UBS Asset Management Head of Infrastructure Equity Andrew Morris explained: “The commitment of the EIB to NFH demonstrates confidence in our investment plans in northern Germany, and the importance of NFH as a key rural player in the German fibre market.”

Background information

The EIB’s key priorities are climate and the environment, development, innovation and skills, small and medium-sized businesses, infrastructure and cohesion. It works closely with other EU institutions to foster European integration, promote the development of the European Union and support EU policies in more than 140 countries worldwide.

The Northern Fiber Holding Group (NFH) is the infrastructure affiliate of UBS Asset Management Real Estate & Private Markets, a division of leading Swiss bank UBS. The NFH unites the UBS affiliates Lünecom, sewikom and terralink to drive forward the expansion of the fibre network in northern Germany.

Media Contacts:

Donata Riedel
d.riedel@eib.org
+352 4379 – 86192

Press Office

press@eib.org
+352 4379 – 21000

SOURCE: European Investment Bank